How a group of agro-enterprises “Resource” reduced
its expenses and increased sales with the help of S&OP
its expenses and increased sales with the help of S&OP
Novo Forecast Enterprise implementation case
- The company profileThe group of agro-enterprises “Resource” has been engaged in poultry industry, crop farming, provender milling, production of sunflower oil, transport and warehouse logistics, as well as the sale of finished products
The company in numbers- the company sells products in 60 countries of the world
- 5 oil extraction plants
- 808 000 tons of poultry in 2021
- 340 000 hectare of land
- 4500 + thousand pallet places in the warehouse complex
- The project problems
- low speed of decision making is a negative factor on the market of perishable products
- unsatisfied customer demand causes indirect losses
- mistakes in forecasts, including human ones cause losses in the form of expenses on logistics, warehouse, merchandising, utilization and management
- lack of awareness about the situations in the supply chain
- The project tasks
- to set up the S&OP cycle in one software
- to configure an ability to work in a single window with all territories
- to configure the ability for all participants of the process to accept and coordinate decisions in the single informational space
- to be able to work on the web for further simplicity and mobility
What was done
Novo Forecast Enterprise system was implemented
What was achieved
<0.5% reduction of write-offs
>2% service level increase
<40% reduction of sales at discount prices due to expiry date
2. We automated production planning in the system to avoid breakdowns and replanning
What was considered
Operational and medium-term plan
Novo Forecast Enterprise system was implemented
- We automated sales planning by using company’s own warehouse space (40% of all sales)
- We automated sales planning through distribution centers of federal retail chains (60%)
- We implemented promo planning effectiveness
What was achieved
<0.5% reduction of write-offs
>2% service level increase
<40% reduction of sales at discount prices due to expiry date
2. We automated production planning in the system to avoid breakdowns and replanning
What was considered
Operational and medium-term plan
- A single window for work
- Identification of a bottleneck in production
- Details: sites, products, categories, divisions
- Variability of production plans
- The process of approval of production plans
The results
- Sales have been pushed up at the expense of service level increase, availability of the necessary product in stock, information about expiry dates
- Expenses have been reduced at the expense of reduction of write-offs at the stocks and reduction of sales volume of almost expired products
Request a demo
Experience the digital power of Novo Forecast Enterprise
You will be in touch with one of our team members after filling in the form
You will be in touch with one of our team members after filling in the form
Contact us: